It seems to me that the USD has a short-term bearish outlook.
The USDx is consolidating inside a potential diamond formation that has 77.82 as the next supportive level. Price will most-likely bounce up from this key-level thus completing the formation. It shall than drop towards the 76.50 level before it resume its uptrend. There is also a MACD bear divergence pointing towards 76.50.
Likewise, the pound has a bullish divergence pointing towards the 1.5931 minimum target level. Therefore a correction for the pound is also guaranteed.
The Euro also has a few MACD bull divergences pointing towards 1.3644 at first and the other one towards the 1.3867. Both are confirmed minimum targets.
Therefore,expect a short-term bearish buck for the next few days.
Cheers.
You're analysis always adds an interesting perspective.
ReplyDeleteStill a chance for Gbp/Usd to make it back to 1.59?
Sorry for the delay in answering poocher. I rarely check my gmail account. Have to create that habit.Yes, it's my belief that we will still see the pound @ around 1.59. Stay tuned.
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